Lower for grains and oilseeds.
US wheat markets softened, with conditions improving on the back of solid rainfall over the weekend. Coceral, the EU grain lobby, overnight cut its common wheat estimate by 1.7 million tonnes on the back of dry weather. The USDA monthly World Agricultural Supply and Demand Estimates (WASDE) report will be released overnight, and will provide direction to the market.
Corn again pushed lower as favorable weather conditions encouraged sellers. A report from Brazil’s agricultural statistics agency, CONAB, will be released overnight and, along with USDA’s WASDE report, will give the market some ideas on production estimates.
The soybean market has been belted in the past two weeks and is within 20-cents-per-bushel of a major support level which has only been breached seriously once in the past five years. Despite the shortfall in Argentina, the bean market is dealing with excessive world stocks which is why the market is approaching new lows.
Rainfall over the weekend was welcomed in southern Australia, but as has been the case over the past few months, falls in central New South Wales were again disappointing. There is more rain on the eight-day forecast, but this is again only looking at getting Victoria and southeast NSW. Western Australia received the best rain to follow up the event from a week earlier, leaving growers there in a strong position for this time of the year.
Source: Lachstock Consulting